Prepared by the KSE Institute team and KSE members of the Board of Directors; 23-29.05.2022

Disclaimer: At the beginning of the Russian invasion of Ukraine KSE Institute launched an analytical project, which was named “SelfSanctions”, aimed to collect data on foreign companies operating in the Russian market and limiting or terminating their activities. Examination of data was conducted jointly with specialists from the Ministry of Economy, the Ministry of Foreign Affairs and the Ministry of Digital Transformation of Ukraine. The database contains a lot of information, we collect daily statistics on changes in the status of foreign companies operating/operated in the Russian market and limiting or terminating their activities. Also, we created the Telegram bot https://t.me/exit_ru_bot for tracking/monitoring of news on priority foreign companies (coverage 1, 2, 3 or 7 days of monitoring). Also, we do regular analysis of changes in share prices and capitalization of parent groups of companies that have or have had business in Russia.

KSE database is partly based on the Yale’s School of Management database, epravda.com.ua and other open sources. Data is verified and KSE status is assigned. Data on stocks is taken from Google and Yahoo Finance. At the same time, the KSE database is more complete and comprehensive and contains 40 percent more information than most other similar databases, as it also includes data on number of staff, revenue, capital and other financial indicators, the latest updates and changes in statuses, links to used sources, and daily updates from the telegram-bot etc.

KSE DATABASE SNAPSHOT as of 29.05.2022

Number of the companies that continue Russian operations (KSE’s status “stay”¹ ) – 590 (+8 per week)

Number of the companies that have reduced current operations and hold off new Investments (KSE’s status “wait”) – 438 (+8 per week)

Number of the companies that have curtailed Russian operations (KSE’s status “leave”) – 1 037 (+4 per week)

As of May 29, we have identified about 2,065 companies and organizations from 70 countries and 55 industries and analyzed their position on the Russian market. About half of them are public ones, for ~ 400 public groups of companies, we also identified (where it was possible) their operating business in Russia (the presence of a controlling stake in a legal entity), which allowed us to calculate the value of capital invested in the country (about $113 billion), local revenue (about $200 billion), as well as staff (almost 0.7 million people). 1,475 foreign companies have reduced, suspended or ceased operations in Russia.

As can be seen from the tables below, As of May 29, companies that declared a complete withdrawal from Russia had $32.5bn in revenues and $19.9bn in capital; companies that suspended their operations on the Russian market had yearly revenue of $58.7bn and $32.7bn in capital. TOP-70 companies-the largest taxpayers paid ~ $20,2bn of taxes annually – haven’t completely withdrawn yet, although suspended or scaled back.

How the capitalization of the largest public companies changed during the war

The only industry that has shown steady growth is Energy, Oil and Gas.

What’s new last week – key news from Daily monitoring (updated on a weekly basis)

More details on daily basis:

KSE Telegram bot on news monitoring @exit_ru_bot 

Twitter of SelfSanctions project

Feedback

¹- KSE status “leave” – Companies that have published on the company’s official website (or their release has appeared in a foreign publication such as FT, NYT, etc.) that are completely shutting down in Russia or companies that have officially announced that they are temporarily reducing operations in Russia
– KSE status “wait” – Companies that have published on the company’s official website (or their release has appeared in a foreign publication such as FT, NYT, etc.) that they are reducing only part of their business operations by continuing to work on other operations or companies that have reported delaying future investment / development / marketing , while continuing their core business
– KSE status “stay” – Companies that ignore exit / downsizing requirements in Russia, as well as companies that have officially stated that they remain in Russia or news of their exit have not been found

²We started to collect information for more companies and will update the database with extended information soon. Also, we started to monitor additionally whether companies really stated any actions to exit the country (currently we observe a very small number of such companies). So far we found information only about a few companies which started selling their business in Russia. Even for most of them – it’s just an intention or they just started the process of sale. Everything else is mostly the statements or some preliminary steps. More details will be available soon once we analyze more data/information and find the reputable sources for verification.

³ https://mcx.gov.ru/upload/iblock/9cc/9ccb4ca68b04d6012b56ca1f74bfb531.pdf

⁴ https://www.ft.com/content/cf2c7515-6076-454b-b94f-23827dff2ef4

⁵ https://www.cargill.com/story/statement-on-cargill-operations-in-eastern-europe

⁶ https://www.reuters.com/article/ukraine-crisis-grains-louisdreyfus-idINL2N2V72M3

⁷ https://www.basf.com/global/en/media/news-releases/2022/04/p-22-215.html

⁸ https://www.bayer.com/en/ukraine

⁹ https://www.syngentagroup.com/en/our-stories/during-food-crisis-syngenta-support-farmers-knows-no-borders

¹⁰https://www.kws.com/corp/en/media-innovation/press/statement-kws-business-activities-in-eastern-europe/

¹¹https://www.corteva.com/resources/media-center/corteva-decides-to-withdraw-from-russia.htm